Japan Watchdog Slaps Warning On Microsoft

Microsoft issued a statement within hours of the warning, saying it would contest the decision.

Fair Trade Commission official Toshihiro Hara said the warning was the first in the world against the clause, which he said in effect prevents Japanese computer makers from demanding damages or royalty fees even when rivals violate patents for important technology.

Such concerns have increased over the last several years as Japanese manufacturers add consumer-electronics features to Windows-installed computers, he told reporters at the trade ministry.

“There are concerns the clause may discourage motivation to develop audiovisual technology and may hinder fair competition in that technological field in our nation,” Hara said.